Zhejiang China Light & Textile Industrial City Group Co., Ltd. (600790) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang China Light & Textile Industrial City Group Co., Ltd.

Why is Zhejiang China Light & Textile Industrial City Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.00% and Operating profit at -27.51% over the last 5 years

With a fall in Net Sales of -19.26%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At CNY 41.36 MM has Grown at 85.93%
PRE-TAX PROFIT(Q) At CNY -8.45 MM has Fallen at -129.91%
NET PROFIT(Q) At CNY -3.37 MM has Fallen at -110.42%

With ROE of 2.17%, it has a fair valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of 11.46%, its profits have fallen by -34%

Underperformed the market in the last 1 year

The stock has generated a return of 11.46% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang China Light & Textile Industrial City Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhejiang China Light & Textile Industrial City Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang China Light & Textile Industrial City Group Co., Ltd.

35.71%

0.49

29.01%

China Shanghai Composite

24.7%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.00%

EBIT Growth (5y)

-27.51%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

21.19%

Dividend Payout Ratio

115.72%

Pledged Shares

Institutional Holding

ROCE (avg)

4.22%

ROE (avg)

8.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

93.66

EV to EBITDA

21.12

EV to Capital Employed

0.89

EV to Sales

8.40

PEG Ratio

Dividend Yield

3.12%

ROCE (Latest)

0.95%

ROE (Latest)

2.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

NET PROFIT(HY)

Higher at CNY 133.85 MM

-24What is not working for the Company

INTEREST(HY)

At CNY 41.36 MM has Grown at 85.93%

PRE-TAX PROFIT(Q)

At CNY -8.45 MM has Fallen at -129.91%

NET PROFIT(Q)

At CNY -3.37 MM has Fallen at -110.42%

ROCE(HY)

Lowest at 1.38%

DEBT-EQUITY RATIO (HY)

Highest at 31.77 %

RAW MATERIAL COST(Y)

Grown by 31.46% (YoY

CASH AND EQV(HY)

Lowest at CNY 2,200.86 MM

Here's what is not working for Zhejiang China Light & Textile Industrial City Group Co., Ltd.

Interest

At CNY 41.36 MM has Grown at 85.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -8.45 MM has Fallen at -129.91%

over average net sales of the previous four periods of CNY 28.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.37 MM has Fallen at -110.42%

over average net sales of the previous four periods of CNY 32.32 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 31.77 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at CNY 2,200.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 31.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales